[Industry news] TIGA CALLS ON GOVERNMENT TO ENHANCE VIDEO GAMES EXPENDITURE CREDIT, IN AUTUMN BUDGET SUBMISSION

This is a press release posted alongside our usual editorial content.

TIGA, the trade association representing the UK video games industry, has urged the Government to enhance the Video Games Expenditure Credit (VGEC) in the Autumn Budget as part of a strategy to drive economic growth.

TIGA’s proposals include enhancing VGEC by raising the rate of relief for smaller budget games, expanding the range of qualifying costs, confirming that post-release launch development costs can qualify and setting a target of 40 days for HMRC to process claims. TIGA made the comments in advance of the Autumn Budget, which will take place on 28^th October 2026.

The UK video games sector supports high-skilled employment, regional economic growth and is export-focused. However, some competitor countries offer more generous tax incentives for games production than the UK, which puts our industry at a disadvantage in the competition for inward investment.

Additionally, many UK studios face challenges accessing finance. TIGA research shows that the number of studio start-ups fell to just 137 in the year ending in September 2025 – a 15-year low. Employment fell by 4.5 per cent over the same period, ending a 14-year growth streak.

TIGA has suggested in its Budget Submission that the Government could consider the following proposals to grow the UK video games industry:

• A Games Growth Relief could be introduced, with production budgets of less than £15 million eligible to claim a credit of 53 per cent on qualifying expenditure. The 53 per cent rate could be gradually tapered down to the standard rate on games with budgets of up to £23.5 million.  A rate of 53 per cent on 80 per cent of qualifying costs, on games with budgets of up to £23.5 million could increase the sector’s GVA by £482 million and create 6,952 jobs (including 896 development roles). If the 53 per cent rate of relief was limited to games with budgets of up to £15 million, this would increase the sector’s GVA by £434 million and create 6,264 jobs, including 807 development roles.
• The standard rate of VGEC relief could be increased from 34 per cent to 39 per cent. This could boost GVA by £436.2 million and create 6,291 jobs (including 760 development roles).
• The proportion of qualifying expenditure under VGEC could be increased from 80 to 100 per cent. This could increase GVA by £731.7 million and generate 10,551 jobs (including 1,292 developers).
• VGEC’s qualifying costs could be expanded to include tangible assets (machines, servers), debugging and community management, and the VGEC 10 per cent expenditure threshold could be lowered to attract more international game development work.
• A studio that has acquired a game and which has incurred new development expenditure could be eligible to claim VGEC on these new costs.
• The Government could explicitly confirm that post-launch development costs, such as DLC, can quality for VGEC. Being able to claim VGEC on post-release content is extremely important, especially for small, independent studios that are trying to sustain and grow a game after launch.
• HMRC should adopt a KPI to process VGEC claims within 40 working days. This would help studios to plan and minimise the risk of a negative impact on developers’ cash flow.
• The Government could explore the potential for establishing a Scale-Up Fund. The Fund, which has been suggested by the UK Video Games Council, could provide project-based, late seed & Series A growth capital (£500k to £2m per studio) to studios that have some market validation (e.g. a commercially released title). The Scale-Up Fund could be delivered as a co-investment Fund, with two thirds of investment coming from the British Business Bank’s (BBB’s) Enterprise Capital Funds and one third from private investors. The BBB would invest directly into the Scale-Up Fund.

Dr Richard Wilson OBE, CEO of TIGA, said:

“The UK video games industry is the largest in Europe and previous TIGA research with the University of Portsmouth shows that the sector generates £12 billion in GVA and contributes £2.2 billion in tax revenues. Our sector supports high-skilled employment, regional economic growth and is export focused. 80 per cent of our workforce is qualified to degree level or above, 78 per cent of the workforce is based outside of London and 95 per cent of studios export. 

“TIGA’s research with the University of Portsmouth shows that enhancements to VGEC could propel growth in the games industry and support growth in the wider economy.  For example, the introduction of a Games Growth Relief with a rate of 53 per cent on 80 per cent of qualifying costs for projects up to £15 million could create over 6,200 skilled jobs and increase GVA by £434 million. 

“Additional reforms to VGEC, including an expansion of qualifying costs, confirmation that post-launch development costs qualify for VGEC, and ensuring that the vast majority of VGEC claims are processed within 40 days will give an important boost to the game development sector, including SME studios.”

Elaine Green, TIGA Chair and CEO of NellyVision, added:

“The UK has an extraordinary video games development community, but studios need the right conditions to turn creativity and talent into sustainable businesses. For smaller and independent developers in particular, access to finance and predictable cash flow can make the difference between simply surviving and being able to invest, recruit and grow.

“Enhancing VGEC would be a practical and powerful way for the Government to back UK game development. Measures such as a higher rate of relief for lower-budget games, broader qualifying costs and support for continued development after launch would help studios invest with greater confidence and build successful businesses for the long term.

“We want the UK to remain one of the very best places in the world to make video games. A competitive and ambitious VGEC, alongside improved access to growth finance, would send a strong signal that the Government shares that ambition.”